Strength in the dollar led to weakness in equities today. QQQQ and SPY both went right to their 50 day MA’s today and had a modest bounce. SPY bounced on the 50 day to the penny and QQQQ came within .05, know your levels. AAPL is even flirting with its 20 day MA (254.26). The question is, do today’s lows and MA’s hold giving us something to shoot against or are we headed lower? I think we are headed to 115 in the SPY but I am not sure we are going to make it there tomorrow. Some of these commodity names have been decimated and folks are going to look to come in and scoop some on the cheap against the SPY 50 day. That is why you will see so many support buys on the list tonight.


There was some good action on break of support shorts and shorts through the second or third test of a MA, especially if you got out there early. NYT, FNSR and NETL are good examples of stocks that were testing a moving average a couple of times and broken down in the weakness. Remember the more a level gets tested the weaker it becomes.

There was some important action in commodity etf’s which I would like to highlight.

KOL (coal etf) and JJC (copper) and SLX (steel) are basically untradeable, but are looked on as a good indicator of global growth; all broke down below their 150 day MA today and are closing in on the 200 day MA.

OIH the oil holders etf (think RIG, SLB, HAL, BHI &DO) bounced off of its 200 day MA today (118.97). Considering all of the news in the sector this week I took that as a good sign. Keep an eye on this level, these stocks helped to start this sell off we should know what they are doing.

With so many sectors coming into important support levels I think we are probably going to get a bounce or sideways action tomorrow, as the last couple of days are digested. The best case scenario tomorrow is we open with some weakness or flat action, consolidate for a bit maybe test the lows, once, bounce and then move higher. I still think we are headed to SPY 115, so don’t get greedy. If you see today’s lows and import MA’s holding, then nibble but if stocks are giving up those levels like they aren’t even there, step aside.

The following ideas maybe actionable tomorrow, but use reasonable stops, don’t get greedy and remember the rules for buying support/reversals. No catching falling knives. Look for the stock to come into the level vertically on light volume and no news. Allow the stock to break the level snap back and buy it on the way back through the level using the low of the candle as a stop. Also, only try this the first time around. The second test is subject to failure.

cmtl 31 short

kmb 60.5 short

sgy 16 short

xom 66 short

a 34.21 reversal/support buy on 50 day MA

bhi 45.46 reversal/support buy on 150 day MA

bmc 37.68 reversal/support buy on 200 day MA

cat 63.19 reversal/support buy on 50 day MA

cern 82.28 reversal/support buy on 150 day MA

clf 50.33 reversal/support buy on 150 day MA

cli 33.03 reversal/support buy on 200 day MA

clx 61.31 reversal/support buy on 150 day MA

cnq 74.15 reversal/support buy on 50 day MA

ctrp 35.09 reversal/support buy on 150 day MA

dow 28.3 reversal/support buy on 150 day MA

ge 17.96 reversal/support buy on 50 day MA

ges 42.11 reversal/support buy on 150 day MA

hmin 31.32 reversal/support buy on 200 day MA

ip 24.11 reversal/support buy on 200 day MA

jbl 14.24 reversal/support buy on 200 day MA

joyg 50.93 reversal/support buy on 200 day MA

nem 51.78 reversal/support buy on 50 day MA

oxy 84 reversal/support buy on 50 day MA

podd 13.49 reversal/support buy on 150 day MA

pru 59.56 reversal/support buy on 50 day MA

rost 53.95 reversal/support buy on 50 day MA

slab 46/45.40 reversal/support buy on 150&200 day MA

stx 17.73 reversal/support buy on 150 day MA

sy 41.03 reversal/support buy on 200 day MA

syna 28.17 reversal/support buy on 50 day MA

tck 33.94 reversal/support buy on 200 day MA

ufs 67.04 reversal/support buy on 50 day MA

unp 73.28 reversal/support buy on 50 day MA

vmw 55.2 reversal/support buy on 50 day MA

wdc 38.17 reversal/support buy on 200 day MA

wfsl 19.17 reversal/support buy on 150 day MA

x 51.49 reversal/support buy on 150 day MA

eem 39.75 reversal/support buy on 200 day MA